An automotive warranty is a type of insurance coverage that is offered to car owners as an assurance against mechanical failures of the car. Warranties are provided for both new and used cars. However, the warranty offered on new cars is called a “new car warranty” and is given by a manufacturer to a car owner at the time of vehicle purchase.

Under the warranty program, it is declared that a vehicle being sold by a manufacturer is free from all kind of defects. In the event of a mechanical breakdown, the manufacturer is liable to repair the problems without charging the car owner for any expenses.

A new car warranty is further divided into two categories, namely a general warranty and power train warranty. A general warranty is also known as bumper-to-bumper and is usually for three years or offered for a distance of 36,000 miles, whichever is earlier. On the other hand, a power train warranty extends for a longer duration and covers the wheels and engine also.

A person needs to be cautious while choosing a warranty. First, it should meet the owner’s requirements and secondly all the documents should be read carefully to avoid any misconception.